Did you create the company in MSSQL first?  Does your SQL allow remote connections?  Can you see the database from ODBC?

Yes I created the databases in MSSQL. I can see the database from ODBC and I can create DSN also. But while trying to do "Sage - Database setup" this error comes.

With SQL Authentication?

Yes.

Run DBSPY during database setup, see what errors come up.

I ran it. This is the log message,

"Linking to [SAMSYS] SQLEXPRESS..SAMSYS..

Database driver = A4WSQLS.DLL

==>GetFileVersionInfoSize returned a length of 1892

==>Database driver returned error code 99"

This is the only message, nothing else.

Something basic is wrong with your SQL configuration.  I refuse to use Windows 8, maybe you need to turn off UAC, or you didn't install Accpac in it's own folder, i.e., not the default  Program Files folder.

I turned off UAC.

And yes, I have modified the default folder path while installing. By default it took "C:\Program Files (x86)\Sage\Sage 300 ERP". I modified it to "C:\Sage 300 ERP".

Is this creating problem? What should I do now?

If your database is in a non-default instance, then you might need to manually create the ODBC DSN as {yourcomputername}_SQLEXPRESS32 using c:\Windows\Syswow64\Odbcad32.

I am having the same problem as Syad - same scenerio

_exactly_ the same?  This error doesn't occur in normal configurations.  

In fact, I haven't seen "error=99" in six or seven years, and it was _always_ with Pervasive databases.

I don't remember getting it before. the differences are windows 8.1 not 8.0 , odbc connection is successful in the SYSWOW64 ODBC data source adminstrator (32-bit), only difference in DB Spy was "linking to [BEVSYS} LSC-ASUS..BEVSYS..next two lines were the same.  UAC is off, firewall is off, installed to C:\Sage, renamed orgs.ism & have tried again.

I don't remember getting it before. the differences are windows 8.1 not 8.0 , odbc connection is successful in the SYSWOW64 ODBC data source adminstrator (32-bit), only difference in DB Spy was "linking to [BEVSYS} LSC-ASUS..BEVSYS..next two lines were the same.  UAC is off, firewall is off, installed to C:\Sage, renamed orgs.ism & have tried again.

Are you using the SQL server name for the connection?  

Is the SQL instance at the root, or is it {server}\{instance}, in which case you might need to manually create the DSN {server}_{instance}32

You can use server\instance in the server name field if SQL server is not installed as the default instance.

Really?  I always had trouble with it.  Maybe they finally fixed it.

Server 2012, Installing Sage300 2012 on server  Exact same errors. Even if I set up the ODBC DSN (which tests fine) and tell Database Setup to use it I get the same error.

Anyone get a solution to this yet ?

Fixed my own problem. Here is what I did, In case it is useful for someone else.

In my case the issue was Security in the shareddata folder.  When I installed I let Sage create the folder. Turns out there was not sufficient rights to some of the subfolders and my "Administrator" account did not have enough rights to fix the security. Deleted the shareddata folder, Created the folder manually and set up security. then redid install and all OK. I suspect an issue with Windows 8 / server2012 causing subfolders to not get correct security in some circumstance. (I have done dozens of installs on those OS with no issue so probably this company's IT did something slightly different than normal which caused this).

So if you get this error in Win 8 or Server 2012 one thing to check is security inside of whatever folder you are using for Shareddata.

FWIW I always manually create the folder and set security before installing - just old habits.

I am not sure if this KB article helps but I thought I would share it: support.na.sage.com/.../viewdocument.do

Did you try right-clicking database setup and running as administrator?

Hi. This is a known issue with Sage 2012 and SQL server 2012/2014. Install the SQL Native Client 10 (from SQL 2008 R2)
Then create ODBC on Client 10 for all System and Company databases on the server, and on each workstation.